Tennessee Marital Property Laws

If you are going through a divorce in Tennessee, it’s crucial that you understand the state’s marital property and division laws. The outcome of property division during divorce can continue to impact you for years. Divorce attorneys in Nashville explain the importance of laws.

Tennessee’s Equitable Distribution Laws

Most states divide marital property during divorce as part of a community property system or equitable distribution system. In community property states, property is generally divided 50/50. In equitable distribution states, marital property is divided in a manner the court considers equitable and just. Equitable distribution is the law in Tennessee.

Here, judges often begin with an equal property division but may adjust by adding or reducing property to a spouse. Therefore, a divorcing couple may not wind up with an exact 50/50 split. Instead, the court considers what is fair under the circumstances, considering factors, such as:

  • The length of the marriage
  • The spouses’ age, physical and mental health, vocational skills, employability, earning capacity, estate, financial liabilities, and financial needs
  • The contribution a spouse made to the education, training, or increased earning capacity of the other
  • The ability of each spouse to make future acquisitions of capital assets and income
  • The contribution of each spouse to acquiring, preserving, appreciating, depreciating, or dissipating the property
  • The value of each spouse’s separate property
  • The estate each spouse brought into the marriage
  • The economic circumstances of each spouse when property is divided
  • The tax consequences to each spouse
  • Valuation of any closely held business or similar asset
  • The amount of Social Security benefits available to each spouse
  • Each spouse’s total attorney fees and expenses for the divorce case
  • Custody arrangements when deciding how to award the family home

Classification of Assets During a Tennessee Divorce

The first step that the court will take to determine how to divide property is to classify it as marital or separate. Marital property is subject to division during the divorce, while separate property is not. Marital property is generally assets or earnings acquired during the marriage, regardless of how the property is titled. Marital property can include:

  • Real property
  • Business interests
  • Cash and financial accounts
  • Intellectual property
  • Digital assets
  • Appreciation of separate property
  • Vested and unvested pensions, stock option rights, retirement benefits, and other fringe benefits related to employment
  • Wages lost during the marriage, property damage, and medical bills awarded in a personal injury claim

Separate property is property obtained:

  • Before the marriage
  • By gift or inheritance
  • Income from separate property
  • Pain and suffering awards, crime compensation awards, future medical expenses, and future lost wages in a personal injury case
  • After an order of legal separation

Once the property is classified correctly, marital property must be valued. Then, the court can divide the property equitably.

Contact Our Divorce Lawyers for a Private Consultation

The Nashville family law attorneys at Burdine Law Firm, PLLC have decades of experience handling legal matters related to property division. We can review your circumstances and discuss your legal options during a confidential consultation. Call us today to arrange a confidential initial consultation.